YACHT & SHIP OWNERSHIP

Madeira Ship Registration

OVERVIEW

Madeira Management Companhia Limitada obtained the first Madeira management
licence in 1989 and is Madeira's leading management company. Our team of forty
legal and accounting professionals, specialise in making the Madeira International Business Centre ("MIBC")
accessible to shipping companies, businesses and their professional advisers.
Our shipping department is managed by Dra. Súzel Camacho, a Portuguese advocate,
who specialises in matters relating to shipping.

Some of the advantages of registering your ship in Madeira include:

No tax on crew salaries

Only the Captain and 50% of the crew must be EU or PALOP (Portuguese
Language African Countries) nationals. In special and justified cases this
requirement may be waived

The crew and their employers are not obliged to pay Portuguese Social
Security contributions provided that contributions are being made in another
country.

The International Shipping Register of Madeira ("MAR") is a credible
alternative to other international registers and yet keeps the technical
discipline and safety, which characterises conventional shipping registers.

Under the MIBC Legislation vessels and yachts may be registered at MAR under
the Portuguese flag provided their activities do not amount to transportation of
goods between Portuguese ports. Transportation between Portuguese ports and
foreign ports is allowed.

REGISTRATION

Certain documents and information regarding the ship should be submitted to
the Technical Commission of MAR for analysis and this will vary depending on
whether it is a temporary or a permanent registration.

CLASSIFICATION

The shipping registry delegates some of its functions and recognises
certificates issued by specified classification societies. Among the functions
that may be delegated are the supervision and enforcement of rules concerning
stability, bulk cargo, on board security as well as the issuing of international
certificates concerning conventions and resolutions of the International
Maritime Organisation and the OLO.

Portugal presently recognises eight classification societies who are
certified to carry out their functions in the framework of MAR, they are:

Lloyd's Register of Shipping (LRS);

Bureau Veritas (BV);

Det Norske Veritas (DNV);

Registro Italiano Navale (RINA);

American Bureau of Shipping (ABS);

Rinave Portuguesa (RINAVE);

Nippon Kaiji Kyokai (NKK).

Mortgage Law

The mortgagor and the mortgagee by written agreement may choose the legal
system of a particular country that shall govern the terms of the mortgage.
Should such agreement not be reached, the Portuguese law shall apply.

Purchasing a yacht is a major acquisition which requires careful planning and
consideration. As a dedicated division of OCRA Worldwide, OCRA Marine is
positioned to assist at every level. We invite you to contact the consultant
listed below for a Free Initial Consultation.

Our professional services go beyond yacht registration and include ownership
structuring that provides for beneficial VAT planning and tax mitigation (and/or
deferral). We are also able to arrange for yacht finance and vessel insurance,
and will take care of any project management requirements in addition to the
day-to-day maintenance and management of the vessel. In short, we take care of
all aspects of yacht ownership providing owners with a single and dedicated
point of contact for the ongoing management of their vessel.

Disclaimer: Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or otherprofessional advice. OCRA Worldwide does not accept any responsibility, legal or otherwise, for any errors or omission.